About Playing with Comdolls

Welcome to my blog! I am HappyPip, lady trader of the Commodity Dollars or "ComDolls!" We will look at price action of the Australian Dollar, New Zealand Dollar, and the Canadian Dollar, as well as their respective economies, and how commodities prices may affect their long term movements. Put on a "happy face" and come join me, won't ya! :)

As you can see from the 1-hour forex chart below, the pair followed through with enough downside momentum after making its triangle support breakout, hitting lows near the 1.6850 minor psychological support. From there, price started to pull back, possibly retracing until the Fib levels.

The 50% Fibonacci retracement is closer to the broken support area around the 1.7350 minor psychological level, which might keep further gains in check and push the pair back towards its previous lows or much lower. Stochastic is already near the overbought zone, which suggests that buying pressure might fade soon, allowing euro bears to take the lead.

Other potential catalysts for this forex trade setup include the release of New Zealand’s quarterly CPI readings on Friday and the Chinese data dump early next week. For now, I’m keeping my eyes locked on the potential entry area around 1.7350-1.7400 to see if I can hop in once economic data confirms my short bias.

What do you guys think of this forex trade setup? As always, I’d love to get your feedback on my ideas!

More from our Blogs

Risk sentiment drove price action for the most part during today's morning London session. However, Brexit-related news resulted in the pound getting pushed this way and that. The ECB's policy decision from yesterday, meanwhile, was still apparently weighing down on the euro. ...